General presentation of the Credit Suisse Company:
The Credit Suisse Group is currently one of the leaders in the financial world on an international and global level. It mainly offers private banking services and wealth management as well as investment banking services.
The group manages no less than 316.5 billion Euros of outstanding deposits and 252.1 billion Euros in outstanding loans. It primarily concerns the Swiss market as well as Europe, the Middle East, Africa, America and Pacific Asia.
Know the competition of Credit Suisse shares:
Credit Suisse is currently one of the major banks in Switzerland but also exercises its systemic banking activities of investment banking in Europe and the rest of the world. It is therefore very important to know and understand the competition in various banking sectors to be able to trade effectively in this share price on the stock markets. We therefore offer you the opportunity to learn about the major competitors of the Credit Suisse bank in Switzerland and elsewhere in the world.
- In the Swiss banking sector: Credit Suisse holds the number two position in Switzerland, just after UBS. It is followed by Raiffeisen, the Banque Cantonale Zurichoise and Julius Baer.
- Systemic Level 2 banking: Throughout the world and regarding its systemic level 2 investment banking activities the major competitors of Credit Suisse are Barclays which is number one in this sector, as well as Goldman Sachs, ICBC, Mitsubishi and Wells Fargo.
- Worldwide: To summarise, Credit Suisse is the ninth largest investment bank worldwide after Goldman Sachs, Morgan Stanley, J P Morgan, Bank of America, Deutsche Bank and Citigroup but just above UBS and Barclays.
Strategic alliances implemented by the Credit Suisse Group:
To conclude, here are the major partnerships implemented by the Credit Suisse Group over the last few years.
- Qatar Holdings: In 2012 Credit Suisse implemented a partnership with Qatar Holdings, a subsidiary of the sovereign investment fund Qatar Investment Authority, in order to create a joint wealth management company.
- Other partners: In 2016 the UBS Group and Credit Suisse jointly launched a fintech accelerator with other partners including Swisscom, Swiss Life and Ernst & Young.
- Metisis: Still in the fintech sector, in 2017 Credit Suisse orchestrated a partnership with the Singapore company Metisis, a specialist in financial technology, with the aim of strengthening its private banking digital platform in Asia.
Introduction and quotation of the Credit Suisse shares:
The Credit Suisse share price is currently quoted on the Main Standard of the SIX Swiss Exchange and is included in the calculation of the FTSE Eurotop 100 stock market index.
The historical stock market share price charts show that this asset has lost numerous points over the last ten years with several successive bearish waves. A major drop first occurred between May 2007 and March 2009 leading to a fall in the share price to 30.54 CHF and despite an attempted recovery towards 60 CHF it continued to fall and passed under the 20 CHF bar in January 2016.
The factors in favour of a rise in the Credit Suisse share price:
It is absolutely necessary to have a comprehensive knowledge of a company before investing online in its share price. Among the factors and points that you should monitor before launching into trading on the stock markets is a full knowledge of the advantages and disadvantages of an asset, the strengths and weak points of the company concerned. Here we examine them in detail for the Credit Suisse Group.
Firstly, we will of course examine the strengths of the Credit Suisse Group and the factors that could promote its growth in the coming years and enable it to more effectively face the competition:
- Firstly, we know that the Credit Suisse Group is a large company and owner of a number of franchises in its primary sector. This of course enables an increase in its sources of revenue and profits and thereby does not expose the company to risks associated to revenue from a single income source.
- Among the advantages of this group we also note the fact that its basic strategy largely depends on its durability which enables it to benefit from a quality brand image with consumers and its clients.
- Still from a strategic point of view, we also note that the Credit Suisse Group has achieved the completion of a number of merger operations in the private banking sector at the right time which has enabled the bank to maximise its profitability and reduce the risks.
- Another undeniable advantage of this group relates to its strong presence on an international level. It should be remembered that Credit Suisse currently operates subsidiaries in over 50 countries around the world and employs more than 50,000 people in these countries.
- Finally, the group is also able to retain its popularity and gain new clients through the implementation of regular sponsorships and the sponsoring of large scale sports events that are heavily featured in the media.
Arguments in favour of a drop in the Credit Suisse share price:
We have just examined the various advantages that the Credit Suisse group offers and its strong points compared with the competition. But clearly this company does not only have advantages, there are some weak points that could hamper its growth and lead to falling trends or limit a rising trend in this asset’s price. Here are a few clear examples:
- The first weak point that we should examine here concerning the Credit Suisse Bank is that despite its efforts in sponsorships, it has difficulties in achieving the same level of visibility as other brands in this activity sector with whom it competes. In fact, even now, the group’s investments in advertising and marketing remain relatively low.
- Finally, the second and last major disadvantage of this asset and a weak point of this company concerns the performance of its activities as an investment bank. Credit Suisse has particularly concentrated its efforts on its growth in the retail banking sector, its investment banking division has shown a relatively weak performance compared with the competition in this sector.
The factors that we have cited will of course enable you to better understand how investors will perceive Credit Suisse shares but it is important to not use these alone. In fact, you should systematically complete comprehensive fundamental and technical analyses of this asset before implementing your trading strategies whilst also taking into account movements in this data over time through announcements and events that are susceptible to cause changes in the BP share price.